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Diversity isn’t a word most people would use to describe sellers in today’s business-for-sale market. More often than not, sellers are Caucasian Baby Boomers interested in exiting their careers to enter retirement. In fact, BizBuySell.com’s recent survey of small business buyers and sellers found that 86 percent of owners interested in selling their businesses identify as Caucasian.

According to BizBuySell’s report, which surveyed over 2,000 prospective small business buyers and sellers, buyers are a more diverse group. Although the market still leans Caucasian, just 74 percent of business buyers identify as Caucasian, a slightly smaller number than the 77.9 percent of Americans listed as Caucasian in the latest U.S. Census (2012). Asian/Pacific Islanders accounted for much of the difference, representing 12 percent of the business buyer pot, more than double the 5.1 percent listed in the census.

However, beyond mere totals, a breakdown of business buyers by race offers additional insights about who is buying businesses and the motivations behind their interest in small business ownership.

More minorities In younger age brackets

As discussed in a previous BizBuySell report, the number of minorities interested in buying a business is particularly strong in younger age groups. Whites again tended to be on the older side, with 48 percent listing themselves as 50 to 64 years old, while 8 percent were 65 or older. About 3 percent of whites interested in buying a business fell between 18 and 29 years old.

Other races, however, leaned more toward younger age brackets. In fact, the 30-to-49-year-old bracket represented the majority of African-American (58 percent), Asian (58 percent) and Hispanic (53 percent) buyers. All three racial categories had 2 percent or less of their population in the 65 and older group, and all outpaced whites in the 18- to 29-year-old demographic.

African-American buyers motivated to be own boss; Asian owners most likely to buy multiple businesses

When asked about their motivations for becoming a small business owner, a large majority (72 percent) of blacks cited the desire to be their own boss, compared to 52 percent of whites and Hispanic buyers and 38 percent of Asian/Pacific Islander buyers. African-Americans were also the most likely to be motivated by better income opportunities and better lifestyles as small business owners.

Caucasian buyers, on the other hand, were most likely to purchase a business as an exit plan from their current careers, with 16 percent indicating they were buying because they don’t like their current jobs.

For Asian-descent buyers, success with a first small business purchase may be a motivating factor for additional investments. When asked about their current employment, 43 percent of Asian buyers said they already own a business, meaning their current interest is either based on a desire to own multiple businesses or sell their current business and purchase a new one.

This could become increasingly common across all ethnicities as the economy rebounds, since buyers have more capital and confidence in the small business outlook.

Although small business ownership remains a male-dominated career path, business ownership is growing among women, especially within the minority demographics.

Women made up 39 percent of African American buyers, by far the highest percentage of all ethnic groups. At the other end of the spectrum, 23 percent of prospective buyers were women within the Asian community, making it the most male-dominated ethnic group surveyed.

International presence In U.S. small business market

As the corporate world continues its march toward globalization, a trend toward greater global diversity is also occurring within the small business community. When asked about their U.S. citizenship status, prospective business buyers responded in a manner that highlighted strong international influences throughout the small business community.

As might be expected, the Caucasian demographic had the highest percentage of natural born citizens at 79 percent. African Americans followed at 70 percent, while 40 percent of Hispanics listed themselves as naturally born citizens.

Asian buyers represent the smallest ratio of natural born citizens at less than 10 percent, with the majority (52 percent) listing themselves as naturalized citizens.

Buyer ethnicity reflects type of business they are interested in

Finally, several interesting trends emerged when buyers were asked to identify the type of business they are interested in purchasing.

Restaurants were the most popular business category overall, with at least 20 percent of all ethnicities expressing an interest in purchasing a food service establishment. About 35 percent of Hispanic buyers indicated an interest in restaurant ownership, outpacing all other ethnic categories and making opportunities for food service ownership the dominant acquisition target for Hispanics.

Whites most often sought out manufacturing businesses (22 percent) or a bar/tavern (21 percent). Blacks were the most likely to be interested in acquiring a bar/tavern (24 percent), but also expressed the most interest in a beauty salon or barber shop (17 percent). Asian buyer preferences pushed toward convenience stores (40 percent), gas stations (36 percent) and liquor stores (32 percent).